Developer calls off plans for Bloomington Hy-Vee

The developer planning to build a new-format Hy-Vee store at Bloomington's Southtown shopping center has called the project off.

Driving the news: Minneapolis-based Kraus-Anderson recently sent an email to city planners saying it had to withdraw the project.

• The firm didn't provide a reason. But in a November email to the city, KA said rising construction costs were impacting lease negotiations.

Details: KA would have demolished the Herberger's and Southtown Lanes spaces to make way for a large grocery store that implemented the company's new smart technology.

What's ahead: Kraus-Anderson executive Matt Alexander told the city his firm, which owns the shopping center, still wants to do a project.

• "Not all is lost," he wrote. "The site design efforts with staff will not go to waste as there are several users who have shown interest in the site over the past few months with the publicity HyVee has brought."

Of note: Hy-Vee declined to comment.